When revenue is earned before the receipt of cash, an adjustment that increases a receivable and decreases a liability account is recorded

a. True
b. False

Indicate whether the statement is true or false


False

Business

You might also like to view...

Bank's Department Store has three departments: Men's, Women's and Children's. The store incurred $50,000 of store rental costs during the current year. The departments identified the following cost drivers: Men'sWomen'sChildren's Labor dollars$530,000 $775,000 $240,000 Number of employees 10  20  4 Square footage 3,000  8,000  1,000 Number of sales transactions 300,000  900,000  90,000  Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

A. $33,333 B. $29,412 C. $34,884 D. $25,081

Business

If the prepaid rent account before adjustment at the end of the month has a debit balance of $2,800, representing a payment made on the first day of the month, and if the monthly rent was $700, the amount of prepaid rent that would appear on the balance sheet at the end of the month, after adjustment, is

A) $2,100 B) $700 C) $3,500 D) $1,400

Business

A company can replace an overdue account payable with a note payable.

Answer the following statement true (T) or false (F)

Business

Bradford Inc Bradford Inc manufactures and sells digital cameras. Bradford's management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year: Product quality audits $90,000 Quality training 60,000 Rework costs 40,000 Warranty

claims 70,000 Inspection of incoming materials 30,000 Scrap costs 24,000 Statistical process control 30,000 Refer to the Bradford Inc information above. What are Bradford's total internal failure costs? A) $60,000 B) $64,000 C) $150,000 D) $70,000

Business